Financial Performance - For the three months ended September 30, 2024, the company reported net sales of $0, compared to $1,315 for the same period in 2023[262]. - The net loss for the three months ended September 30, 2024, was $6,636,679, compared to a loss of $1,437,494 in the same period in 2023[262]. - For the nine months ended September 30, 2024, the company reported a net loss of $14,384,526, significantly higher than the loss of $4,211,621 for the same period in 2023[266]. - Cash used in operating activities for the nine months ended September 30, 2024, was $5,677,192, compared to $3,298,947 for the same period in 2023[270]. Operating Expenses - Operating expenses for the three months ended September 30, 2024, increased by $2,753,106, totaling $4,193,006, primarily due to third-party validation testing and administrative costs[264]. Financing Activities - The company generated $7,056,000 from financing activities for the nine months ended September 30, 2024, primarily from private placement financing[274]. - The company received net proceeds of $17,555 from the merger with Honeycomb Battery Company, which will be used for corporate growth strategies[247]. - The company entered into a private placement transaction on March 13, 2024, generating gross proceeds of $3,850,000[248]. Assets and Liabilities - As of September 30, 2024, the company had an accumulated deficit of $104,336,032[277]. - As of September 30, 2024, the company's total contractual obligations amount to $3,548,360, which includes short-term notes payable of $1,953,335 and excise taxes of $890,385[281]. - The company has no long-term debt, capital lease obligations, or long-term liabilities as of September 30, 2024[282]. - The company has not entered into any off-balance sheet financing arrangements or established any special purpose entities[279]. - The company has no obligations, assets, or liabilities considered off-balance sheet arrangements as of September 30, 2024[278]. Accounting Policies - The company accounts for forward purchase agreements based on specific terms and applicable guidance, assessing whether they meet criteria for equity or liability classification[285]. - The fair value of the forward purchase agreements is classified as Level 3, requiring significant estimates and judgments for valuation[287]. - Recent accounting standards updates, such as ASU 2023-09 and ASU 2023-07, are not expected to have a material impact on the company's financial statements[289][290]. - The company prepares financial statements in accordance with U.S. GAAP, requiring management to make estimates that could materially affect reported amounts[283]. - Critical accounting estimates are identified based on uncertainty and potential material impact on financial condition or results of operations[284]. - The company evaluates its accounting estimates on an ongoing basis to ensure accuracy and relevance[283].
Solidion(STI) - 2024 Q3 - Quarterly Report